Investors in American cannabis stocks received positive developments, although not the federal legalization most await. On Thursday the Biden administration announced that the US government will be issuing pardons to Americans who have been previously charged with simple possession of marijuana. In addition to the recent news, the Biden administration will also be looking into the classification of Cannabis as a Schedule 1 drug. The current classification of Schedule 1 which puts cannabis in the same box as Heroin which is classified higher than fentanyl under the Controlled Substances Act. Changes in public policy is a step in the right direction and long overdue. Will this be the first major step in fully legalizing Cannabis federally? One can hope!
Since most if not all US cannabis companies are listed on the Canadian Securities Exchange (CSE) due to regulatory rules, the CSE Composite Index jumped 20%. As we can see that the rise of the CSE Composite Index began right at the time of the Biden tweet regarding Cannabis
Here is a list of Cannabis stocks that reacted positively and ones we think will continue to appreciate in value.
Curaleaf Holdings (CSE: CURA) (OTCQX: CURLF) is a US based Cannabis company that operates 137 dispensaries with 27 cultivation sites spanning across 21 states with expanded operations targeting Europe. Curaleaf Holdings rose 44% from the intraday lows to close the trading day at $8.60, up 35% for the day.
Trulieve Cannabis Corp.
Leading cannabis dispensary giant Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) also saw an aggressive rally, increasing 43% from the intraday lows of $11.76, closing the day at $16.50, up 37.7%.
Jushi Holdings Corp.
Multistate cannabis operator Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) closed near the days high of $2.93 up 55%.
Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) rose to high of 19.87, up 55% during the trading day, but still closed up 31.9% on the day on increased volume not seen since the beginning of 2022.
AdvisorShares Pure US Cannabis
The Cannabis ETF AdvisorShares Pure US Cannabis (NYSE: MSOS) which is comprised of US cannabis operators like GTII, CURA, TRUL and VRNO to name a few, also had a big rally with MSOS hitting a high of $12.84, up 46% from the days low and closing the session at $12.14, up 36% for the day.
The newly announced changes coming to Cannabis in the US could spark an extended rally in the coming days and with many cannabis operators being listed on the Canadian Securities Exchange, we’re hopeful that this puts an end to the continuous down trend the CSE Composite Index has seen year to date.
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